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Sony group corporate


Strategic management

Strategic management can be defined as comprising the evaluation, decisions and activities an organization undertakes in order to produce and sustain competitive advantages.

Key traits of Strategic Management

  • Directs the organization toward overall goals and goals.
  • Includes multiple stakeholders in decision making.
  • Needs to include short-term and long-term perspectives.
  • Recognizes trade-offs between efficiency and effectiveness.

Strategy can be developed at many levels in a multi-layered company there could be:

Corporate level strategy details a corporation's overall path in terms of its general philosophy towards expansion and the management of its various business units. Such strategies determine the sort of a small business a corporation wishes to maintain and what sections should acquired, changed and sold. This strategy addresses the question what business are we in? Devising a strategy for a multidivisional company like Sony requires at least four types of initiatives.

  • Establishing investment priorities and steering corporate resources into the most attractive business units.
  • Initiating actions to increase the combined performance of those business units that the organization first experienced.
  • Finding ways to increase the synergy among related sections in order to increase performance.
  • Decisions working with diversification.

Business level strategy deals with decisions and activities pertaining to each business device. The main aim of your business level strategy is to help make the product more competitive in market. This level strategy addresses the question how do we compete? Although business level strategy is led by upstream corporate level strategy business product management must build a strategy that is suitable for its own operating situation. Mls and Snow (1984) recognized four modes of strategic orientation: Defenders, Prospectors, Analysers and Reactors. These strategies can help clarify why companies facing similar environmental risks or opportunities respond differently and why they continue to do this over a long time frame. In turn different competitive or business strategies impact the down stream efficient strategies.

Functional level strategy pertains to the major useful operations within the business product, including research and development, marketing, processing, finance, and individuals resource efficiency and addresses the question how do we support the business level competitive strategy? The three levels of strategy corporate and business, business and efficient form a hierarchy of strategy within in a big multidivisional firm.

Different degrees of strategy of Sony

Sony Organization was founded by Masaru Ibuka and Akio Morita in 1946, now having mind quarters at Minato, Tokyo, Japan. Sony is one of the biggest electronics on the globe with revenue 7. 7 trillion yen. Sony are making products like Consumer & professional electric equipments, Communication &information-related tools, Semiconductor, Gadgets and components, Electric battery, Chemicals, Sony Pictures Entertainment, Sony Music, PlayStation and Blu-Ray devices.

Sony Firm as a giant corporation has divided its firm into five main sections as Sony Pictures, Sony Computer, Sony Music Sony Ericsson, and Sony Financial. Sony Corporation has its own corporate strategy, and the each of its five sections having their own business strategy.

Corporate Strategy

Business level strategy

Functional level strategy

In Sony Group Corporate Strategy Revise FY2008 - FY2010 Sony has set out some goals and disclosed about its corporate and business strategy. In particular, the business will concentrate on strengthening center businesses, enhancing network initiatives and leveraging international growth opportunities to build for the future and drive further progress and earnings. Main factors in the strategy of Sony are,

  • Further strengthening the core business
  • Network initiatives
  • Capitalize on Growth in BRIC Countries and Other Emerging Markets
  • Environmental Initiatives
  • Financial Approaches for the Mid-Term

A good strategy always leads a business towards success and improvement, in the other way a negative or inefficient strategy always needs that firm into loss and bad reputation. As we realize that Japanese are proficient at management and the majority of other countries are make an effort to put into practice Japanese management techniques. The word is a Japanese word adopted into English referring to a viewpoint or practices focusing on continuous improvement in manufacturing activities, business activities generally, and even life in general, depending on interpretation and use. Sony Company was good at strategic plans through the use of these management strategies. As we talked about earlier a poor or inefficient strategy leads the organization into bad reputation, regarding Sony they are failed to use an efficient strategy which Sony's online earnings for the July-September 1 / 4 for 2006 falling 94% to at least one 1. 7 billion Yen, in comparison to 28. 5 billion Yen for the same period this past year. After that they are trying to put into action better strategies and also to restore their reputation and brand value and regain their number one position in electronics industry.

Portfolio method of strategy

Portfolio way was one of the first approaches to chart strategy and allocate resources in multi-business organizations. As commercial strategists jumped on the diversification bandwagon they soon found challenging in controlling the source of information needs diverse businesses and their strategic missions, particularly in times of limited resources. Responding to that obstacle the Boston Consulting Group pioneered a strategy called stock portfolio techniques that attemptedto help professionals balance the circulation of cash resources among their various businesses while also figuring out their basic tactical purpose within the entire portfolio. The very best managers at greater farms need a way for spotting products that deserve more investment as well as lines that aren't living up to goals. So they conduct a portfolio evaluation, in which they examine they evaluate their company's products and divisions to find out which are best and that are weakest. Much as securities analysts review their portfolios of stocks and options and bonds, deciding which to sustain and which to dispose of.

Strategic business device (SBU)

Strategic business units are the key business units within diversified companies. Each SBU has its own managers, resources, targets, and opponents. A division, products or an individual product may explain the boundaries of any SBU. Each SBU pursues its distinct mission and frequently develops its plans independently of other items in the organization.

BCG matrix

To examine each of their organization's SBUs, marketers need some form of portfolio performance platform. A widely used framework was developed by Boston Consulting Group. The forex market show/ market progress matrix places SBUs in a four quadrant chart that plots market show against market expansion potential. The positioning of SBU along the horizontal axis suggests its market talk about in accordance with those of opponents on the market. Its position along the vertical axis suggests the annual expansion rate of the market. After plotting most of a firm's business units, planners split them according to the matrix's four quadrants as shown in the amount.

Stars stand for High market share and High growth rate. These products or SBUs are high development market leaders. Although they make considerable income, they need inflows of even more cash to fund further development.

Cash cows command word High market talk about in Low progress market segments. Marketers for such an SBU want to keep this position for as long as possible. The business enterprise produces string cash flows, but instead of investing heavily in the unit's own deals and creation capacity, the company can use this cash to fund the progress of other SBUs with higher development potentials.

Question grades achieve Low market show in higher development marketplaces. Marketers must determine weather to continue supporting the products or SBUs, because question markings typically require considerably more cash than they make. In case a question mark cannot become a star, the firm should grab of the market and focus on other marketplaces with greater probable.

Dogs take care of only Low market show in Low expansion markets. SBUs in this category guarantee poor future potential clients, and marketers should withdraw from these businesses or SBUs as fast as possible. In some cases these products can be sold to other companies where they are better fit.

Drawbacks of BCG matrix

  • Ignore the dynamism of marketplaces.
  • Omit the real value of competitor activity. Competitor effect is not embraced in the model and the related concept of market share will not replacement for the strategic aspect known as sustainable advantage.
  • Refer only to one sizing of market attractiveness (market progress) and omits other valuable measurements such as dynamics of competitors, potential size, company capability and barriers to advertise entry.
  • Exclude the interrelationships between SBUs which are so important in building strategy.
  • Be essentially deterministic in characteristics, for the reason that service position within one of quadrants demands a strategic course which is well rehearsed from prior experiences.
  • BCG does not recognise that tactical direction also relies on marketing acumen and creative imagination which can suggest a risk strategy in given circumstances as opposed to the predictable route.

GE matrix

To beat the drawbacks detailed for the BCG matrix a profile approach improved which is GE matrix. GE matrix is similar to BCG matrix but in GE matrix it is having nine cells for more appropriate analysis and and yes it take Industry attractiveness and Business power as the parameters.

Industry attractiveness depends upon parameters

  • Market size
  • Industry rivalry
  • Demand variability
  • Market expansion rate
  • Industry success
  • Global opportunities
  • Macro environmental factors

Business strength is set by

  • Market share
  • Distribution route access
  • Profit margins in accordance with competitors
  • Brand equity
  • Growth in market share
  • Production capacity


Here in this article we mentioned about different levels of strategy and how the stream of hierarchy works in organizations. We also mentioned about Sony Organizations' corporate and business strategy and the other degrees of strategy and exactly how Sony utilizing its strategy. Portfolio approach to strategy development is trusted approach while creating a strategy, BCG matrix is one of the very most popular portfolio methods to proper development. Here we also talked about about pits and falls of BCG matrix and we also reviewed about GE matrix and how it get over the drawbacks of BCG matrix.


  • Burgelman RA, Christensen CM & Wheelwright SC, 2004, Strategic Management of Technology and Invention, 4th edn, McGraw-Hill, Boston,
  • Human Source of information Management: Theory and PracticeBy John Bratton, Jeffrey Gold
  • Strategic Management: Creating Competitive AdvantagesBy Gregory G. Dess, Marilyn L. Taylor
  • Formulation, execution, and control of competitive strategyBy John A. Pearce, Richard Braden Robinson
  • http://www. quickmba. com/strategy/matrix/ge-mckinsey/
  • Tourism marketing: a collaborative approachBy Alan Fyall, Brian Garrod
  • Contemporary MarketingBy David L. Kurtz
  • Strategic management: a brand new approach to expanding skills, knowledge and creative imagination By Paul Joyce, Adrian Woods
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